Mikkel Christensen
Fuel prices are climbing sharply, and the ripple effects are being felt across the car market.
Fuel prices are climbing sharply, and the ripple effects are being felt across the car market.
As more drivers look for alternatives to petrol and diesel, demand for electric vehicles is accelerating.
But as interest rises, supply is struggling to keep pace, creating new pressure on prices.
Demand surges
According to reporting by Drive, citing data from AutoGrab, daily sales of used electric vehicles in Australia have more than doubled since mid-February.
The shift follows rising fuel costs linked to the Middle East conflict, prompting more buyers to consider switching to EVs.
At the same time, the number of used EVs listed for sale has dropped significantly, tightening the market.
Supply shrinks
AutoGrab data shows listings fell from 3,535 on 28 February to 2,387 by 24 March, a decline of about 33 percent in just a few weeks.
“This is translating directly into pricing,” AutoGrab Chief Commercial Officer Saxon Odgers said.
“This is not simply short-term volatility, it’s a structural response to rising fuel costs, which are fundamentally reshaping buyer behaviour.”
Prices climb
With fewer vehicles available, prices are rising. Newer EVs have seen the largest increases in retained value.
Drive reports that 2025 models retained nearly 88 percent of their original value in March, up from around 77 percent in mid-February.
Other recent model years also recorded gains, reflecting broader upward pressure across the market.
Interest grows
Buyer activity has surged alongside sales. Drive reports that enquiries for EV listings increased by 175 percent in the month to 29 March.
Interest in hybrid vehicles also rose, while demand for petrol and diesel cars declined by about 15 percent.
“Enquiry rates that we see on drive.com.au – and hear anecdotally from manufacturers – are skyrocketing,” said Drive Head of Content James Ward.
Outlook uncertain
Analysts warn that prices could continue to rise unless more vehicles enter the market.
“If listings fail to recover toward the 2800 to 3000 range through late March and April, upward pricing pressure movement is likely to follow,” the AutoGrab report stated.
While seasonal factors such as end-of-financial-year fleet turnover may boost supply, the report suggests demand could still outstrip availability in the near term.
Sources: Drive, AutoGrab Market Intelligence Report
